China Sanctions US Companies Over Taiwan Arms Sales

China announced a new round of sanctions on Thursday targeting subsidiaries of the U.S. military contractors General Atomics and General Dynamics for their part in arming Taiwan.

The latest measures ban the senior executives of General Atomics Aeronautical Systems and General Dynamics Land Systems from entering China, and freezes company assets in the country, according to a Chinese Foreign Ministry statement carried by state media.

Beijing, which said the sanctions came into effect the same day, accused the companies of "seriously interfering in China's internal affairs and undermining China's sovereignty and territorial integrity."

General Dynamics operates aviation services in China and owns Hong Kong-registered entities, according to The Associated Press. Neither company has responded publicly to the announcement.

"We strongly object to Beijing's efforts to retaliate against U.S. companies for their support to U.S. arms sales that strengthen Taiwan's legitimate self-defense requirements," a U.S. State Department spokesperson told Newsweek.

"Consistent with the Taiwan Relations Act, the United States makes available to Taiwan defense articles and services necessary to enable it to maintain a sufficient self-defense capability. This policy has remained consistent across eight different U.S. administrations and contributes to the maintenance of peace and stability across the Taiwan Strait," the statement said.

China's long-ruling Communist Party has never governed in Taiwan but says the island is part of Chinese territory.

The democratically elected government in Taipei has repeatedly rejected the sovereignty claims, and Taiwanese public opinion polls return decreasing interest in a political union across the Taiwan Strait.

The United States broke off diplomatic ties with Taiwan in 1979 when it switched recognition to Beijing, but it remains Taipei's strongest international backer in addition to its main arms supplier.

The aerospace unit of General Atomics manufactures unmanned aerial vehicles including the Predator and the Reaper. The company was scheduled to deliver four MQ-9B SkyGuardian or SeaGuardian drones to Taiwan from 2026 as part of a 2020 contract worth nearly half-a-billion dollars.

General Dynamics Land Systems produces military vehicles such as the Abrams tank. The U.S. in 2019 approved Taiwan's request to purchase more than 100 M1A2T main battle tanks in $2 billion deal.

Beijing and Washington disagree on the conditions under which the U.S. might one day end arms sales to Taiwan. Amid growing cross-strait tensions, the sales have continued, with Taipei also seeking to boost its domestic defense industry capacity.

The Chinese government has sanctioned U.S. defense contractors or their executives at least five times in the last four years. Recent measures have been enacted under the country's Anti-Foreign Sanctions Law, an instrument enacted in 2021 to counter U.S. sanctions on China's officials and firms.

American entities blacklisted by Beijing in some form or another include Lockheed Martin, which makes Taiwan's fleet of F-16 fighter aircraft as well as the M142 HIMARS multiple rocket launcher, which Taipei has also ordered.

Also on the list are weapons developers Boeing Defense, Raytheon and Northrop Grumman.

In February last year, Beijing sanctioned Lockheed Martin and Raytheon after an F-22 Raptor, made by the former, fired an AIM-9X Sidewinder missile, made by the latter, to shoot down a suspected Chinese spy balloon off the South Carolina coast, registering the fifth-generation fighter jet's first air-to-air kill.

Update 4/12/24, 9:15 a.m. ET: This article was updated with a comment from the U.S. Department of State.